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Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $6.000 The division sales for the
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $6.000 The division sales for the year were $1.044,000 and the variable costs were $863,000. The fixed costs of the division were $187.000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating the business segment would be: Multiple Choice $56 100 decrease O $124.900 decrease $50 100 decrease $181,000 increase O $181.000 decrease 8 of 10 Next > 23
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